Why Is Car Insurance Mandatory?
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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
$2,000 MedPay Maryland 30/60/15 30/60/15 UM
$2,500 PIP Massachusetts 20/40/5 20/40 UM
$8,000 PIP Michigan 50/100/10 Six PIP options: minimum $50,000 for insureds on Medicaid Minnesota 30/60/10 25/50 UM/UIM
$40,000 PIP Mississippi 25/50/25 Missouri 25/50/25 25/50 UM/UIM Montana 25/50/20 Nebraska 25/50/25 25/50 UM/UIM Nevada 25/50/20 New Hampshire* 25/50/24 25/50 UM New Jersey 15/30/5 15/30 UM/UIM
$15,000 PIP New Mexico 25/50/10 New York 25/50/10 25/50 UM
$50,000 PIP North Carolina 30/60/25 30/60/25 UM/UIM North Dakota 25/50/25 25/50 UM/UIM
$30,000 PIP Ohio 25/50/25 Oklahoma 25/50/25 Oregon 25/50/20 25/50 UM/UIM
$15,000 PIP Pennsylvania 15/30/5 $5,000 PIP Rhode Island 25/50/25 South Carolina 25/50/25 25/50/25 UM South Dakota 25/50/25 25/50 UM/UIM Tennessee 25/50/15 Texas 30/60/25 Utah 25/65/15 $3,000 PIP Vermont 25/50/10 50/100/10 UM Virginia* 25/50/20 Washington 25/50/10 Washington, D.C. 25/50/10 25/50/5 UM West Virginia 25/50/25 25/50/25 UM Wisconsin 25/50/10 25/50 UM Wyoming 25/50/20 *Minimum limits for New Hampshire and Virginia reflect minimum coverage requirements for drivers who decide to obtain auto insurance coverage.
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: FG Trade/Getty Images November 12, 2021 Sara Coleman is an insurance contributor at Bankrate. She has a couple of years of experience in writing for insurance domains such as The Simple Dollar, Reviews.com, Coverage.com and numerous other personal finance sites. She writes about insurance products such as auto, homeowners, renters and disability. Amy Sims is a managing editor for Bankrate, leading a team responsible for creating educational insurance content. Bankrate logoThe Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logoThe Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logoEditorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logoInsurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. You have likely heard family members or friends mention auto insurance, and there is no doubt you have seen commercials and advertisements for a multitude of auto insurance companies. But have you ever stopped to ask why car insurance is mandatory? And is it possible to drive without it? Compare rates and save on auto insurance today! Get quotes Close X RatesRates keep going up in 2022. Compare rates and save on auto insurance today! Get quotes Close X This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More RATE INCREASE ALERTRates increased up to 12% this year
Shop for a better rate before you renew your current policy. This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More The bottom line is, car insurance is a legal requirement in almost every state. Beyond the legal requirements, an auto insurance policy provides additional financial protection for you and your passengers if you are involved in a car accident.Why is car insurance required
Almost all states require drivers to carry at least a minimum amount of auto insurance coverage. And if you look at the minimum requirements within each state, you will quickly see that the required coverage is largely focused on liability insurance. Liability coverage is critical because it helps pay for injuries and property damage you may cause to someone else if you are at fault in an accident. Liability coverage can help other drivers become whole again after an accident and reduce the chance of incurring out-of-pocket expenses from an incident they did not cause. Depending on your state, you may also be required to carry additional coverage to offset medical expenses for you and passengers in your vehicle too. Beyond the legal coverage requirements for your state, if you lease or finance a vehicle, the lender will almost always require additional coverage and even higher coverage limits in some cases. Most lenders comprehensive and collision coverage to your policy. These coverage types help pay to repair your vehicle’s damage from either an accident or something out of your control, such as a hailstorm or hitting an animal. A leased vehicle may be required to carry higher liability limits since the lessor is technically the owner of the vehicle. You may also be required to carry gap coverage to cover your vehicle’s depreciated value if it were to be totaled in an auto accident. Before you finalize your auto insurance policy, it is essential to understand both your state legal requirements as well as the requirements from your lender or lessor so that you are properly insured.Where is car insurance required
Almost all states require you to carry , with some states mandating personal injury protection (PIP), uninsured and underinsured motorist coverage (UM/UIM) and medical payments in addition to the minimum liability requirements. Familiarizing yourself with your auto insurance coverage requirements can help you prepare in advance for what coverage types you will need when it’s time to set up your insurance policy. The two exceptions to the state mandates are New Hampshire and Virginia, where auto insurance is technically not a requirement. New Hampshire requires you to meet to forego auto insurance. In addition, if you are involved in an at fault accident, you could be held responsible for paying costs related to injuries, vehicle damage and legal fees out of pocket. In Virginia, you can pay a fee each year, but it provides zero auto insurance coverage should you be at-fault in an accident.How much car insurance do you have to have
State auto insurance laws fall into one of two buckets: at-fault and no-fault laws. For at-fault states, one of the drivers will be determined to be at-fault for an accident, which means they are financially responsible for the accident. No-fault states require drivers involved in an accident to file a claim with their own insurance first, regardless of who is at fault or caused the accident. Then, once the fault is determined, the at-fault party’s insurance might cover the rest of the expenses. Liability requirements are listed as three numbers, which are: bodily injury liability coverage per person, bodily injury liability coverage per accident and property damage liability per accident coverage. Uninsured motorist and underinsured motorist coverage will follow a similar format in cases where these coverage types are required. Not all states require uninsured motorist or underinsured motorist coverage. And only a few states offer uninsured motorist property damage coverage. PIP coverage may also be required in some states, as well as medical payments coverage in a few cases. Reviewing your or will help you understand your coverage requirements in your state. State Minimum liability requirements Other state requirements Alabama 25/50/25 Alaska 50/100/25 Arizona 25/50/15 Arkansas 25/50/25 California 15/30/5 Colorado 25/50/15 Connecticut 25/50/25 25/50 UM/UIM Delaware 25/50/10 15/30 PIP Florida 10/20/10 $10,000 PIP Georgia 25/50/25 Hawaii 20/40/10 $10,000 PIP Idaho 25/50/15 Illinois 25/50/20 25/50 UM Indiana 25/50/25 Iowa 20/40/15 Kansas 25/50/25 $4,500 PIP Kentucky 25/50/25 $10,000 PIP Louisiana 15/30/25 Maine 50/100/25 50/100 UM/UIM$2,000 MedPay Maryland 30/60/15 30/60/15 UM
$2,500 PIP Massachusetts 20/40/5 20/40 UM
$8,000 PIP Michigan 50/100/10 Six PIP options: minimum $50,000 for insureds on Medicaid Minnesota 30/60/10 25/50 UM/UIM
$40,000 PIP Mississippi 25/50/25 Missouri 25/50/25 25/50 UM/UIM Montana 25/50/20 Nebraska 25/50/25 25/50 UM/UIM Nevada 25/50/20 New Hampshire* 25/50/24 25/50 UM New Jersey 15/30/5 15/30 UM/UIM
$15,000 PIP New Mexico 25/50/10 New York 25/50/10 25/50 UM
$50,000 PIP North Carolina 30/60/25 30/60/25 UM/UIM North Dakota 25/50/25 25/50 UM/UIM
$30,000 PIP Ohio 25/50/25 Oklahoma 25/50/25 Oregon 25/50/20 25/50 UM/UIM
$15,000 PIP Pennsylvania 15/30/5 $5,000 PIP Rhode Island 25/50/25 South Carolina 25/50/25 25/50/25 UM South Dakota 25/50/25 25/50 UM/UIM Tennessee 25/50/15 Texas 30/60/25 Utah 25/65/15 $3,000 PIP Vermont 25/50/10 50/100/10 UM Virginia* 25/50/20 Washington 25/50/10 Washington, D.C. 25/50/10 25/50/5 UM West Virginia 25/50/25 25/50/25 UM Wisconsin 25/50/10 25/50 UM Wyoming 25/50/20 *Minimum limits for New Hampshire and Virginia reflect minimum coverage requirements for drivers who decide to obtain auto insurance coverage.